Exam Case – III

Sampling Design to Understand the Consumer Behaviour in Rural

Market

According to many studies, the rural population, which constitutes nearly 70% of the
Indian population, was always ignored by the companies due to its low-income level,
low literacy rate, high cost because of improper infrastructure facilities, etc. Most of
the companies
gave nominal importance to the rural markets due to unavailability of proper
distribution channels, media and low awareness. However, in the early 21st century,
as the growth in the urban market started stagnating, the companies were forced to
explore new markets. Thus, the foray into the rural market for growth became
evident. However, as rural consumer is different from urban consumer in terms of
age, occupation, economic situation, lifestyle, priorities, attitudes, etc., they had to be
dealt in a different manner. Many researches have been conducted towards
understanding consumer behaviour in rural
marketing. In a paper titled, Rural Marketing – Understanding the Consumer
Behaviour and Decision Process,1 the authors reported a study on rural consumers
to understand how effectively rural marketing could be done.
Buying decisions of consumers differ from rural to urban area. Due to low per capita
income of the consumers, low consumption patterns were witnessed among the rural
population as compared to urban population. In addition, urban consumers are more
brands conscious and are aware of new trends and technologies. According to
industry experts, the Indian rural market had been growing at a faster pace, adding
more than 1 million new consumers every year, which now accounts for more than
50% of the volume consumption of Fast-Moving Consumer Goods (FMCG) in India.
Considering the importance and growth potential of the Indian rural market, the
authors tried to study the consumer behaviour and decision-making pattern of the
rural people. In order to understand the buying characteristics and
major influences in buying decisions in the rural market for FMCG, the authors
selected three talukas – Khatav, Khandala and Koregaon in Satara district,
Maharashtra for the empirical study (Exhibit I).
The survey was conducted in three talukas of Satara based upon the non-disguised
structured questionnaire. The data was collected from 397 random respondents
whosoever were available in the household as a respondent. Questionnaire was
designed in the regional language to help the respondents understand the questions
clearly. Questionnaires were prepared to capture the opinions/attitudes and beliefs of
the respondents. The questionnaire had questions that were close-ended. Apart from
the demographic details, the respondents were requested to rank the alternatives to
the questions. First Rank was to be assigned to the option of prime importance and
the last rank to the least important alternative. The schedules were conducted
simultaneously in the sample area. The researcher recorded the responses of the
respondents.